Pak Sahafat – Although Ukraine covers a small part of the world, the effects of the conflict in those Slavic regions have spread to other parts of the world in various forms and will continue to do so.
According to a report by Pak Sahafat News agency on Saturday, quoting the website of the TeleSur TV network, according to a report by the World Bank, Ukraine’s economy will shrink by up to 45 percent, mainly affecting emerging economies in Europe and Central Asia. According to forecasts, the economies of these countries will shrink by 4.1% in 2022.
In this way, the side effects of the so-called “special military operation” of Russia in Ukraine will be felt in different parts of the world. The consequences of this military conflict are evident in the global oil price and have affected various economies, especially the countries dependent on Russian oil. Western and Eastern European countries, which are equally dependent on Siberian gas, have also been affected by the effects of the Ukraine war. Oil prices are currently (April 2022) above $ 100 per barrel.
There are a number of other countries that have been severely affected by declining production of some Ukrainian and Russian agricultural products, including wheat and corn. The World Trade Organization estimates that wheat prices will rise by up to 85 percent due to poor harvests in Ukraine.
Middle Eastern and East African countries, including Afghanistan, Egypt and Syria, depend on Ukrainian agricultural imports. “Ukraine produces enough food for the world’s 400 million people,” said David Beasley, executive director of the UN World Food Program.
World Bank President David Malpas also noted that the Ukraine conflict has created a “sudden shortage of energy, fertilizer and food.” He added: The price of these products has affected different social strata in the world, but it is devastating for the poorest people.
The report added: To the present war situation must be added the devastating effects of the Covid-19 epidemic a scenario that will be shocking for all the world’s economies during 2022 and as long as the military conflict in Ukraine continues.
Read more:
Fertilizer production will be another product of the global production system, which in case of disruption in production and supply; will have a great impact on the process of planting agricultural products around the world, especially the Americas. What is certain is that there will certainly be a reduction in production, followed by a decrease in supply and an increase in prices. Fertilizer shortages in Mexico have pushed the price of the crop up to 300 percent. According to the report, most of the fertilizers imported to Mexico come from Ukraine.
It is obvious that food costs have increased all over the world, not only in the agricultural sector, but also in livestock products such as dairy, meat and poultry.
In this global scenario, the growth of violence is another side effect that the World Bank President acknowledges. “The tendency to set insecurities is deeply troubling,” he said. More precisely, the conditions of the Ukraine war will exacerbate class conflicts and social inequalities around the world.
The intensification of class struggles, as we saw in the first round of the French presidential election, was an example of the growth of violence in the world. Reduce taxes on energy prices (gas and electricity) from 20% to 5.5%, income tax exemptions for people under 30 and double the so-called subsidy for single mothers, create an anti-immigration discourse, incite nationalist sentiment and even claim exit From NATO, Marine Le Pen was able to win 25 percent of the vote in the April 10 election. A similar speech by Victor Urban brought him to power in the Hungarian elections.
Similarly, the phenomenon of violence, which has been a constant issue for the poor and marginalized in various Latin American and Caribbean countries, is exacerbated by the Ukraine war and rising prices for agricultural and livestock food.
Consequences of the Ukraine war on the US economy, inflation has reached a maximum of 8.5 percent by March 2022. Inflation that is unprecedented since December 1981.
Ultimately, the war in Ukraine could last for several years, and the destruction of Ukraine’s infrastructure would be a lucrative business for the United States, and it would be a big deal when the United States turned to its reconstruction economy. Remember that the principle of US imperialism is not to have friends, but to have interests.